Neanics Management Consulting LLC

Financial Literacy: No Excuses, You Need It! Ratios! Do you understand what each financial statement means? Firms organize their finances into three key statements: the balance sheet, the income statement, and the statement of cash flow. ?? The Balance Sheet The balance sheet shows a business's current financial position, breaking it down into assets and liabilities. ?? A crucial ratio is the current ratio, calculated as cash plus cash equivalents divided by current liabilities. Ideally, this ratio should be greater than 1. A ratio below 1 suggests the company may struggle to meet its short-term debt obligations. Another important aspect is how quickly a company collects payments owed to them (receivables). ?? The receivables turnover ratio, calculated as credit sales divided by average accounts receivable, measures this. A higher ratio indicates efficient collection of credit sales and suggests the company has reliable customers. ?? The Income Statement The income statement analyzes a company's profit over a specific period. Key figures include revenue, cost of goods sold (COGS), and expenses. ?? The gross margin ratio is a vital profitability indicator. It's calculated as net revenues minus COGS (which includes raw materials and labor) divided by net revenues. A higher gross margin generally indicates the company can charge a premium for its products and services. ?? The Statement of Cash Flow The statement of cash flow tracks cash inflows (revenue) and outflows (payments). Low cash flow can put a company at risk of insolvency. ?? A key ratio here is the cash conversion ratio, or cash flow from operations divided by net income. The higher the better, since it indicates that the company is managing well its cash flow and converting net income into cash, not other assets, or debt service. ??Do you need to improve the ratios management in your company? Contact us at [email protected]

Congratulations to our new certified Project Management Associate! We are proud to share that Davi is now a PMI (Project Management Institute) certified associate in project management. Project management is one of Neanics' core capabilities. In need of project management support, or your own project management framework? Contact us at?[email protected]

OUR 6 STEPS TO TRANSFORM YOUR ORGANIZATION At Neanics Management Consulting, we know how challenging it can be to streamline operations, increase profitability, and regain control over your business. That's why we've developed a proven 6-step methodology that helps companies overcome inefficiencies and optimize for long-term success. Here's how our process works: **Strategic Diagnosis – We assess your business goals, bottlenecks, and financial health to identify critical areas for improvement. **Operational Diagnosis – By mapping out your core processes, we uncover inefficiencies and break down responsibilities. **Action Plan – We create SMART action plans that target bottlenecks, improving roles and workflows. **Execution – We work alongside you to implement the plan, ensuring accountability at every step. **Results – We track improvements, adjust as needed, and implement routines to sustain progress. **Follow-Up – We provide ongoing support and monitor your business to ensure you're on track for long-term growth. Our hands-on experience and commitment to results drive real change in your business. Let's discuss how we can help your organization overcome its challenges and build a more profitable future! #BusinessStrategy #ProcessImprovement #Leadership #Efficiency #Consulting #Growth ? 6 STEPS away from business excellence! Neanics will help you act now. Need to change? Contact us at?[email protected]

INDEPENDENT ADVISOR, YES, I NEED ONE ! Have you ever felt lonely when making decisions? Have you ever felt the lack of knowledge in the team or yourself to envision the future of the business? Have you ever needed a reference from outside to compare and enhance your processes? Have you ever needed a second or third opinion to diminish or share the risk of the decision-making process? Have you ever had doubts about the leadership of your firm? Yes, most owners and top executives from small to large firms feel a piece is missing in their grand strategy, or vision of the future of the organization. Most owners do not have time to seek solutions, best practices, and quick fixes due to the everyday burden of the operations. Counting on an external, independent advisor is one of many solutions to fill this gap. The advantage of an independent advisor is that he will not only bring external knowledge and solutions but also serve as a fact checker to the owner, usually used to make self-judged decisions despite the team's opinions. Additionally, the independent advisor becomes more committed and knowledgeable about the business over time, becoming an integral part of the decision-making process. A good thing about an external agent supporting your business is that he(she) will not wait for a market downturn to raise the facts, and will work to keep the firm lean and agile, even when growing, the time things get inefficient and planning aside. The result is that the owner reaps the benefits of a professional with an external view of the business that brings knowledge from different industries and best practices. Neanics can support your firm by providing services as an independent advisor. Need to change? Contact us at?[email protected]

THINK LONG-TERM, ACT NOW Strategic planning sounds like a complex, large company-exclusive practice. But no, every firm strategizes through the mental models of the owner, managers, and employees. It comes to organizing and putting on a canvas to get the real benefit of it. Simply put, a firm must consider several perspectives to design a strategic plan. Usually, the process begins with strategic marketing analysis, which evaluates the firm's offering, positioning in the market (market share, competitors), customers' perspectives, and current and future demands. In parallel, analyzing the distribution of revenues, profit, channels, and geography by products/services and customers is vital to understanding what brings the company's money and satisfaction to the market. With that, the firm can compare its product/service plan, i.e., improvements in current products/services and new technologies and solutions, against the reality of the numbers and expectations of the market. The result is a draft to adjust the offering, the firm positioning, the new product/service plan, and a sales forecast. The financial plan is as important as the marketing analysis, which is crucial for the firm's survival. Financial goals are easily defined but not easily attainable. For that reason, everything must be aligned with the financial plan. Additionally, at this point, the main strategic goals, qualitative or quantitative, are defined according to the company's expected future. For example, "streamline the product offering and phase out the low-volume, low-profit items until the end of the year." Besides the marketing and financial plan, the process involves aligning the operations to the expected plan, so it is necessary to align the human and material resources to the marketing and financial realities and proceed to a loop analysis until a feasible plan is in place. Other perspectives other than Marketing, financial, and operational, such as legal, regulations, risk, and ESG, may be considered. The planning process is more important than the plan, so the firm becomes agile to deal with uncertainties. No plan at all means blind navigation. Neanics can support your firm by reviewing or designing a strategic plan. ***Need to change? Contact us at?[email protected]

TIME DOES NOT FORGIVE – THE URGENCY TRAP A slight angle deviation in the present time generates a significant dislocation in the future, or a small stimulus today causes a ripple effect in the future. A common mistake in small or large organizations is postponing improvement or intervention actions. With no exception, emergency issues come up daily, but when the urgencies engulf a company, they create an urgency trap. There are two critical changes that can help reinforce the improvement culture and prevention medium-term improvements neglect. By developing and deploying an improvement process and culture to deal with improvement changes, the firm will keep track of and control the necessary moves to accomplish strategic and operational demands. Even if some projects receive a temporary stop order due to urgency traps, the projects will be documented, tracked, and resumed as soon as possible. All improvement or intervention projects should be reviewed periodically by the management team. Time does not forgive; inaction equals lost opportunities. Another important step a company can take is to establish a knowledge-based culture and a learning process. By making time available and assigning resources to build knowledge, the company can generate slight deviations today that will impact the firm profoundly in the future—urgency traps trunk knowledge creation effectiveness and efficiency. And time does not forgive. Resources become obsolete, less creative without continuous learning, and locked into the urgency trap. ????????????? Neanics can help your firm in both ways: by establishing a continuous improvement methodology and a learning culture. As an external resource, Neanics can handle minor detours that will positively impact the organization's future. Need to change? Contact us at?[email protected]

BLUEPRINT OF THE COMPANY – 3D Most firms start with an idea, then a sketch, and things move on. Although start-ups today tend to start with a better structure due to entrepreneurship centers at colleges or incubators, most businesses continuously reorganize along their growth path. The continuous flow of new minds, leaders, and operational people add to the culture and evolution of the firms, as they bring experience from different backgrounds and cases of success and failure. As things develop and the businesses become complex, so do the intrinsic structure, activities, responsibilities, and overall management. It is difficult to read the company, and it is easy to get lost in the auto-generated network of complexity. Designing a company blueprint, both top-down from the executive perspective and bottom-up from the operational teams and their activities, facilitates the realignment of the efforts and understanding of what is currently done and who does what in the company. Designing a blueprint means identifying the main processes, routines, responsibilities, performance measurements, and leadership dynamics within the organization. That is what is called a 3D mapping of the firm. The result is a clear vision of the bottlenecks, resource allocation, improvement opportunities, and transparency. Neanics does just that:?maps the entire firm or targeted troubled processes to support the management in performing better. Contact us at?[email protected]

+GROWTH + PROFIT When it comes to the primary strategic goals of a firm, owners focus on growth and profit. The first is necessary to gain size to survive competition, and the former is essential to survive, reinvest, and return the invested capital. Free cash flow is as vital as the other two so the firm can grow and innovate sustainably. ? Growth can be organic through the business operations. It also comes through acquisitions of other firms. Organic growth originates from the sales of goods and services to current and new customers in the firm's market, new markets, and new products and services developed by the firm. So, how do we boost organic growth other than by strengthening the current recipe? It is fundamental to understand the setting in which the company is competing, its consumers' expectations, and the firm's differentials so it becomes first in the consumer choice. To understand the competitive setting, a firm must research the market, competitors, pricing, and distribution strategies and mostly listen to customers. The company can analyze its positioning, strengths, and weaknesses, seek opportunities, and preemptively mitigate threats by doing so. ?? With a precise mapping of its strategy, the company can better define its offerings, priorities, new products, and services and streamline its processes to achieve growth. On the other hand, profit depends more on an internal effort, considering that the prices of goods and services follow the market requirements within the acceptable price elasticity range and positioning of the firm. By leading the teams to know the processes, allocating the resources correctly, and deploying a comprehensive performance evaluation methodology, the firm will reduce the cost of goods sold, gain productivity, and increase the profit margin. Neanics can help owners, executives, and managers design and deploy a simple and effective strategic framework for growth and work hand in hand to streamline the company's leadership, processes, and performance to enhance profit. Contact us at?[email protected]